1. Explain how inflation can be regarded as a tax.
2. Define price confusion and money illusion.
3. What is the key difference between the CPI and the PPI?
1. Inflation tends to produce tax burdens and liabilities. People will start to pay capital gain
Which of the following is the best measure of a countrys standard of living?
-real GDP per capita
Gross domestic product is the market value of all:
-final goods and services produced within a country in a year
Which of the following would NOT be included
In his book The Wealth of Nations, Adam Smith claimed that individuals:
-are motivated by self-interest
The main incentive for business activity is:
When private interests in markets are not aligned with the social interest:
-regulatory action may